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Getbig Main Boards => Politics and Political Issues Board => Topic started by: Soul Crusher on October 13, 2009, 03:15:17 PM
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Dollar loses reserve status to yen & euro
By PAUL THARP
www.nyp.com
Last Updated: 3:16 AM, October 13, 2009
Posted: 1:44 AM, October 13, 2009
Ben Bernanke's dollar crisis went into a wider mode yesterday as the greenback was shockingly upstaged by the euro and yen, both of which can lay claim to the world title as the currency favored by central banks as their reserve currency.
Over the last three months, banks put 63 percent of their new cash into euros and yen -- not the greenbacks -- a nearly complete reversal of the dollar's onetime dominance for reserves, according to Barclays Capital. The dollar's share of new cash in the central banks was down to 37 percent -- compared with two-thirds a decade ago.
Currently, dollars account for about 62 percent of the currency reserve at central banks -- the lowest on record, said the International Monetary Fund.
Bernanke could go down in economic history as the man who killed the greenback on the operating table.
After printing up trillions of new dollars and new bonds to stimulate the US economy, the Federal Reserve chief is now boxed into a corner battling two separate monsters that could devour the economy -- ravenous inflation on one hand, and a perilous recession on the other.<p>
"He's in a crisis worse than the meltdown ever was," said Peter Schiff, president of Euro Pacific Capital. "I fear that he could be the Fed chairman who brought down the whole thing."
Investors and central banks are snubbing dollars because the greenback is kept too weak by zero interest rates and a flood of greenbacks in the global economy.
They grumble that they've loaned the US record amounts to cover its mounting debt, but are getting paid back by a currency that's worth 10 percent less in the past three months alone. In a decade, it's down nearly one-third.
Yesterday, the dollar had a mixed performance, falling slightly against the British pound to $1.5801 from $1.5846 Friday, but rising against the euro to $1.4779 from $1.4709 and against the yen to 89.85 yen from 89.78.
Economists believe the market rebellion against the dollar will spread until Bernanke starts raising interest rates from around zero to the high single digits, and pulls back the flood of currency spewed from US printing presses.
"That's a cure, but it's also going to stifle any US economic growth," said Schiff. "The economy is addicted to the cheap interest and liquidity."
Economists warn that a jump in rates will clobber stocks and cripple the already stalled housing market.
"Bernanke's other choice is to keep rates at zero, print even more money and sell more debt, but we'll see triple-digit inflation that could collapse the economy as we know it.<p>
"The stimulus is what's toxic -- we're poisoning ourselves and the global economy with it."
Ben Bernanke's dollar crisis went into a wider mode yesterday as the greenback was shockingly upstaged by the euro and yen, both of which can lay claim to the world title as the currency favored by central banks as their reserve currency.
Over the last three months, banks put 63 percent of their new cash into euros and yen -- not the greenbacks -- a nearly complete reversal of the dollar's onetime dominance for reserves, according to Barclays Capital. The dollar's share of new cash in the central banks was down to 37 percent -- compared with two-thirds a decade ago.
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Can I/Should I put my personal savings in Euros? ???
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I HOPE YOU GUYS WATCHED ROLLOVER LIKE I SAID YESTERDAY....
Dollar loses reserve status to yen & euro
By PAUL THARP
Last Updated: 3:16 AM, October 13, 2009
Posted: 1:44 AM, October 13, 2009
Ben Bernanke's dollar crisis went into a wider mode yesterday as the greenback was shockingly upstaged by the euro and yen, both of which can lay claim to the world title as the currency favored by central banks as their reserve currency.
Over the last three months, banks put 63 percent of their new cash into euros and yen -- not the greenbacks -- a nearly complete reversal of the dollar's onetime dominance for reserves, according to Barclays Capital. The dollar's share of new cash in the central banks was down to 37 percent -- compared with two-thirds a decade ago. Currently, dollars account for about 62 percent of the currency reserve at central banks -- the lowest on record, said the International Monetary Fund.
Bernanke could go down in economic history as the man who killed the greenback on the operating table. After printing up trillions of new dollars and new bonds to stimulate the US economy, the Federal Reserve chief is now boxed into a corner battling two separate monsters that could devour the economy -- ravenous inflation on one hand, and a perilous recession on the other. "He's in a crisis worse than the meltdown ever was," said Peter Schiff, president of Euro Pacific Capital. "I fear that he could be the Fed chairman who brought down the whole thing."
Investors and central banks are snubbing dollars because the greenback is kept too weak by zero interest rates and a flood of greenbacks in the global economy. They grumble that they've loaned the US record amounts to cover its mounting debt, but are getting paid back by a currency that's worth 10 percent less in the past three months alone. In a decade, it's down nearly one-third. Yesterday, the dollar had a mixed performance, falling slightly against the British pound to $1.5801 from $1.5846 Friday, but rising against the euro to $1.4779 from $1.4709 and against the yen to 89.85 yen from 89.78.
Economists believe the market rebellion against the dollar will spread until Bernanke starts raising interest rates from around zero to the high single digits, and pulls back the flood of currency spewed from US printing presses. "That's a cure, but it's also going to stifle any US economic growth," said Schiff. "The economy is addicted to the cheap interest and liquidity." Economists warn that a jump in rates will clobber stocks and cripple the already stalled housing market. "Bernanke's other choice is to keep rates at zero, print even more money and sell more debt, but we'll see triple-digit inflation that could collapse the economy as we know it.
"The stimulus is what's toxic -- we're poisoning ourselves and the global economy with it."
http://www.nypost.com/p/news/business/dollar_loses_reserve_status_to_yen_hFyfwvpBW1YYLykSJwTTEL%3Bjsessionid%3D65E301CF47ED50D15170F8D6530791C5
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Damn 3 we were thinking on the same level at the same time. I just posted the same article...I hope everyone watched ROLLOVER...
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Can I/Should I put my personal savings in Euros? ???
Based on this news Euros, Yen, Yuan...anything but GREENBACKS. And above all keep your eye on news like this. If you have enough money to buy some gold then do it and just hold onto it. When the dollar crashes some other currency will have to step to the forefront (right now which currency will do that is unknown) which ever currency becomes the FINAL reserve currency can sell your gold for that currency. This is some scary uncharted waters here.
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stocks are OK too.
Look for big companies that are major exporters. Stick your money in there for a dollar hedge AND to benefit from global growth.
Problem with Gold is that this is where everyone will put their money, so Gold price is not only rising because of the dollar fall but also because of the increase in demand. Could be a Gold bubble if everyone piles into it.
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People are so blind to what is going on.
Hugo posted a scream of Beck a month back that was spot on.
While fools focus on health care, global warming etc, major shifts are afoot on the world stage and we are being set up for third world status.
God, Gold, Guns!
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While fools focus on health care, global warming etc, major shifts are afoot on the world stage and we are being set up for third world status.
You should have seen people starting threads here about Gates, ACORN, and other distractions like that.
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People are so blind to what is going on.
Hugo posted a scream of Beck a month back that was spot on.
While fools focus on health care, global warming etc, major shifts are afoot on the world stage and we are being set up for third world status.
God, Gold, Guns!
Could this be the reason for the blindness and distractions
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The dollar is loosing status because the government can't stop deficit spending. We go farther into debt and more reliant on China to finance our debt.
How can anyone support the spending habits of this administration and the last one?
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Could this be the reason for the blindness and distractions
Seriously - was that supposed to be an English accent ?
Fucking shite effort if it was - wank & bollocks.
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The dollar is loosing status because the government can't stop deficit spending. We go farther into debt and more reliant on China to finance our debt.
How can anyone support the spending habits of this administration and the last one?
But don't perpetual deficits go hand in hand with being a world reserve currency?
Plus, China can finance all it wants but until it moves into a more balanced economy with a robust amount of consumption, than they will rely on the U.S. just as much as we rely on them.
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Seriously - was that supposed to be an English accent ?
Fucking shite effort if it was - wank & bollocks.
I really hope you paid more attention to the message rather than be distracted by accent nonsense...
How IRONIC this is given the point in the video was to show how the public is manipulated and controlled by the media with its use of DISTRACTING MATERIAL like TV, movies etc etc... and to take the time and turn off these distractions so you can focus on the more important things...
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I really hope you paid more attention to the message rather than be distracted by accent nonsense...
How IRONIC this is given the point in the video was to show how the public is manipulated and controlled by the media with its use of DISTRACTING MATERIAL like TV, movies etc etc... and to take the time and turn off these distractions so you can focus on the more important things...
Strange - to me it looked like some dude in his bedroom with the lights off, a "V for Vendetta" mask and an imaginary penchant for accents.
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You should have seen people starting threads here about Gates, ACORN, and other distractions like that.
dont forget the shotty sources too ;D
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Strange - to me it looked like some dude in his bedroom with the lights off, a "V for Vendetta" mask and an imaginary penchant for accents.
That's what you SAW...But what did you HEAR?
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I heard nothing of substance !
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I heard nothing of substance !
The cavity is empty.
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No - it's just full of smut ;)